American Reprographics Company closes $200 million high yield bond offering

Friday, December 03, 2010

Press release from the issuing company

Walnut Creek, CA - American Reprographics Company today announced that on December 1, 2010, it completed a private offering of senior unsecured notes due December 15, 2016, in the aggregate principal amount of $200 million (the "Notes"). The Notes are senior unsecured obligations of the Company, and bear an interest rate of 10.5% per annum, payable semi-annually on June 15 and December 15 through the maturity date. The Notes were priced at 97.824% of par, creating a yield at issuance of 11%, and contain an optional call provision dated December 15, 2013. Customary for instruments of this type, there are no financial maintenance covenants associated with the Notes.

The Company used the net proceeds from the offering to repay its existing credit facility which was due to expire in 2012.

"I'm very pleased to have successfully concluded the offering," said K. "Suri" Suriyakumar, Chairman, President and CEO. "Our new debt structure provides patient capital to help us position the company for success as the economy recovers, and to create long-term value for our investors. The notes enable us to capitalize on ARC's potential without the restrictions normally associated with a conventional bank loan."

The transaction was led by BoA Merrill Lynch, with J.P. Morgan and Wells Fargo Securities also participating as joint book-running managers. Citi was a co-manager on the transaction.

Concurrent with the offering, the Company also entered into a new 5-year, $50 million revolving credit line with Wells Fargo Bank with normal and customary terms and conditions.